IFAD urges more rural investment to ease food costs

The International Fund for Agricultural Development (IFAD) says rising food prices are hitting low-income countries the hardest—and stronger support for rural areas could help turn the tide. IFAD President Alvaro Lario delivered the message during a UN special event in New York, tied to next week’s launch of the 2025 State of Food Security and Nutrition in the World report.

The report shows how food inflation surged between 2021 and 2023—from 2.3% globally in late 2020 to 13.6% in early 2023. The increase was even steeper in low-income countries, where inflation reached 30% last May. COVID, conflict, and climate shocks all played a role.

“When prices go up, the poorest feel it first,” said Lario. “Many people in rural areas already spend most of their income on food.”

While short-term fixes like subsidies can help, IFAD says real progress depends on steady investment in farming, storage, roads, markets, and food data systems. This helps avoid supply chain problems and eases price spikes.

Small rural businesses also need better access to financing. They create jobs, keep local markets active, and help families afford better food. But farmland still gets a small slice of global aid—just US$10 billion in 2023, or 4–6% of total development assistance.

At a recent financing summit, IFAD called for new tools to bring more public and private money into rural economies, aiming to unlock US$4.5 trillion in potential across the global food system.